FISCAL NOTE

Date Requested: March 02, 2017
Time Requested: 10:19 AM
Agency: Higher Education Policy Commission
CBD Number: Version: Bill Number: Resolution Number:
2675 Introduced HB2756
CBD Subject: Education (Higher)


FUND(S):

0589

Sources of Revenue:

General Fund

Legislation creates:

Neither Program nor Fund



Fiscal Note Summary


Effect this measure will have on costs and revenues of state government.


House Bill 2756, if enacted would make Promise scholarships available to students who wish to pursue a vocational certificate or degree in a community and technical college education program. The bill would permit a student desiring to pursue a certificate or degree in a West Virginia accredited community and technical college education program, as defined in section two, article one, chapter eighteen-b of this code, to be awarded a Promise scholarship for as many as four semesters in such a program if the student has a composite ACT score of at least eighteen and a high school grade point average of 2.5 and maintains a 2.2 grade point average in the chosen program. The conservative cost estimate for adoption of this legislation is $8.3 million the initial year with recurring costs of $14.3 million to $17.7 million each year thereafter. We expect the annual cost of this program to grow as tuition and fee costs increase each year until tuition and fee rates equal or exceed the maximum PROMISE award of $4,750.



Fiscal Note Detail


Effect of Proposal Fiscal Year
2017
Increase/Decrease
(use"-")
2018
Increase/Decrease
(use"-")
Fiscal Year
(Upon Full
Implementation)
1. Estmated Total Cost 0 8,320,547 17,677,831
Personal Services 0 0 0
Current Expenses 0 0 0
Repairs and Alterations 0 0 0
Assets 0 0 0
Other 0 0 0
2. Estimated Total Revenues 0 0 0


Explanation of above estimates (including long-range effect):


These figures include an increase in the number of community college students attempting the ACT and an increase in the number who would have traditionally enrolled in a four-year institution that will choose a two-year institution for their first two years of college. Projected amounts are based on an anticipated 9.2 percent increase in the number of award-eligible students from 2015 to 2019 and an annual 5 percent increase in enrollment-weighted tuition over the same time period. CTCS PROMISE “Two-Year” Students by Cohort Enrollment Percent Weighted Increase Tuition From Previous Cohort (Estimate) Total Year 2015 2,300 $3,617 $8,320,547 2016 3,762 $3,798 $14,287,512 71.7% 2017 3,852 $3,988 $15,360,385 7.5% 2018 3,942 $4,187 $16,504,828 7.5% 2019 4,021 $4,396 $17,677,831 7.1%



Memorandum






    Person submitting Fiscal Note: Ed Magee
    Email Address: edward.magee@wvhepc.edu